Assignment On Exports & Imports and Balance of Payments: Submitted by Kankipati Vivek Roll - No-48
Assignment On Exports & Imports and Balance of Payments: Submitted by Kankipati Vivek Roll - No-48
Assignment On Exports & Imports and Balance of Payments: Submitted by Kankipati Vivek Roll - No-48
Introduction:
Growth of an economy is directly related to exports. If exports increase at a faster pace as compared to imports, nothing can stop an economy from being a developed one. On the other hand, the instability in exports can adversely affects the process of economic development. Lower exports mean low foreign exchange and lower foreign exchange in turn means a small purchasing capacity of a nation in the international market. Fluctuations in export earnings introduce uncertainties in an economy. These uncertainties influence economic behavior by adversely affecting the level and efficiency of investment and in turn have a negative effect on growth. For decades, agriculture has been associated with production of essential food crops. At present, agriculture above and beyond farming includes forestry, dairy, fruit cultivation, poultry, bee keeping, mushroom, arbitrary, etc. Today, processing, marketing and distribution of crops and livestock products etc. are all acknowledged as part of current agriculture. Thus, agriculture could be referred to as the production, processing, promotion and distribution agricultural products. Agriculture plays a critical role in the entire life of a given economy. Agriculture is the backbone of economic system of a given country. In addition to providing food and raw material, agriculture also provides employment opportunities to very large percentage of population. In this assignment I took pulses to study the share of pulses in Indian agricultural exports and Imports and Balance of payments with respect to Pulses.
Intrepretation:
From the data(www.indiastat.com) we can say that the Export and Import of Pulses are fluctuating and but the share of pulses export remains almost stable since years together even the production has raised approximately by 10 times in the period of two decades by this we may predict that the production of the pulses is not that improved compared to that of the other agricultural commodities and we are continuously importing pulses which can be understood by the quantity imported every year and the Balance of Payments(always negative) expect for 2 years i.e., 1999-00 & 2000-01,may be because of high production and by government policies. And from the same data we may predict that import percentage dropped from 51% (1990-91) to 6% (20008-09) that is the percentage of other products has increased tremendously to decrease this percentage of course this is an alarming situation but we cannot come to any judgment by this small information with us. And from the same data we can also come to the conclusion that the percentage of agriculture imports compared to that of the Total National imports almost remained constant but the percentage of the agricultural exports compared to that of the nations exports dropped down from 16% to 9%.